Translated into the Chinese language, the taxation handbook aims to ease the understanding of Uganda’s taxation system. For the last 26 years, China’s exports to Uganda have significantly increased at an annualized rate of 16 per cent, from $21.6 million (Shs 82.3 billion) in 1995 to $1.02 billion (Shs 3.9 trillion) in 2021.
In 2021, Uganda exported $41.2 million (Shs 157 billion) to China. Currently, China is one of the biggest trading partners of Uganda and is
the highest source of foreign direct investment. The Chinese community has greatly invested in manufacturing and engineering sectors in Uganda.
Speaking at the launch of the taxation handbook at Silver Springs hotel, John Musinguzi, the commissioner general of URA, said they had various engagements with the embassy of China and the Chamber of Commerce of China, and they resolved to translate Uganda’s tax laws, and practices into the Chinese language to harness trade relationships and tax compliance.
“One of the key challenges that we have faced in the effort to collect revenue is the gap between the taxpayer and the tax collectors. We are working deliberately to narrow that gap. When we deal directly with our clients, we eliminate chances of misrepresentation because many times we have been misrepresented by the middlemen in between,” he said.
“If you read that handbook, we have put in toll-free numbers, emails, and chat numbers to increase the interaction and cooperation between the Chinese community and the tax collection body,” he said.
Meanwhile, URA signed a memorandum of understanding with the Chinese Chamber of Commerce to continue with the sensitization campaign. One handbook will not put everything together and bring that close cooperation.
“We have signed up to continue collaborating, holding engagements and workshops to try and explain tax laws because they are a bit complicated. Continuous engagement and discussions will bring out more light, and when they have complaints, we shall try to solve them smoothly,” Musinguzi said.
“The tax handbook will be helpful to the Chinese investors in Uganda. I met many delegations this year from China. Many of them are looking for business investment opportunities. They first wanted to know tax policies in Uganda but many could hardly understand English.”
Zhang Lizhong, the Ambassador of China, said the publication came at the right time, and thanked URA for the initiative.
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